Why would having an on-site babysitter be any different?
When you hire an in-home caregiver to care for your children, you are classified by law as a household employer and she is your household employee. This is different from taking your children to an in-home licensed day care, because the owner of the in-home day care is considered a business owner and is responsible for all income, expenses and taxes for her business. When you hire a caregiver into your home to care for your children, your caregiver is under your direction and you become responsible for administering her payroll as your employee. It is illegal to classify your caregiver as an independent contractor in which she would be responsible for all payroll taxes – as if she also had her own business. You are responsible for administering the payroll process for your employee. This means that you need federal and state tax ids as a household employer. You are responsible for withholding federal and state payroll taxes from your employee’s pay each pay period. You are also respons
